Ashgabat – Ali Rashid Al Jarwan, CEO of Dragon Oil, confirmed that the OGT-2024 Forum and Exhibition has become an important platform for exchanging experiences, discussing innovations and showcasing the achievements of global companies, and that the company’s goal is to maximize gas utilization and reduce gas flaring to near zero by 2027, explaining that Dragon Oil’s investments exceed $10 billion with cumulative production reaching 447 million barrels since the company’s presence in Turkmenistan in 2000, and our goal is to use the best available technologies to improve oil recovery and asset safety. “Turkmenistan’s cooperation with is a clear example of the country’s openness to international partners,” Al Jarwan said during his speech at the dialogue session of the 29th Turkmenistan Oil and Gas Forum. “Investments in Turkmenistan’s energy sector have reached about $10 billion, and total oil production since the company started operations in the country has reached 447 million barrels.”
“Dragon Oil is currently focusing on improving operational processes, enhancing oil recovery rates, and implementing gas reinjection projects. This is in line with global trends in sustainable energy development. The company plans to leverage its international experience to support Turkmenistan’s energy transition, which in turn will enhance the country’s economic potential on the global stage,” Al Jarwan said.
Strategic approach
“During a recent session, specific proposals were put forward for further deepening cooperation, and participants presented their ideas, taking into account not only the interests of Turkmenistan but also their own business goals, emphasizing the mutually beneficial nature of these relations. Thus, cooperation with Dragon Oil demonstrates Turkmenistan’s strategic approach to developing the energy sector amid challenges,” he explained. “Looking ahead, Dragon Oil’s strategy has been redefined to focus on operational excellence, enhanced oil recovery, gas reinjection and reduced flaring. Our goal is to use the best available technologies to improve oil recovery and asset integrity, finance social and training projects in Turkmenistan that aim to develop social infrastructure and educate and train the new generation on opportunities in the new energy sector, assess the suitability of investing in clean energy using economic feasibility and opportunity assessment, promote Dragon Oil’s sustainable development and use its international knowledge and experience to contribute to the energy transition in Turkmenistan, focus on improving our performance and preserving the environment, as well as better use of subsurface and underground data,” Al Jarwan said. “Dragon Oil has conducted seismic exploration of the surrounding area to help define the complex geology, combined with artificial intelligence studies. Our research aims to maximize production potential. Properly applied data analysis systems and tools can overcome reservoir complexities and optimize operations that lead to returns on our investments and reduce environmental impact, accidents and bottlenecks.”
Recycling water
Regarding the reduction of fresh water use, Al Jarwan said: “Water is an essential component of our oil production, and hundreds of barrels of water are used every day. While Dragon Oil is currently able to recycle most of this water, we are rethinking our operations to reduce wastewater and use water injection back into the reservoir to support production.”
Regarding the reduction of methane leaks, he explained: “Finding ways to reduce methane leaks is a cost-effective opportunity for the industry. Dragon Oil plans to reduce carbon inefficiency and enhance gas utilization through preventive maintenance, leak detection, and replacement of leaking equipment and pipes.”
Regarding the opportunities for oil and gas companies, Al Jarwan said: “Production costs will be a critical parameter in the future as oil price volatility and geopolitics will prevail. Using the latest technologies to increase productivity and a fast government approval cycle are key to efficiency, calling for reducing gas flaring by using gas to extract oil or produce its own energy, including green energy production such as solar to power our operations, and focusing on value chain integration: oil production is linked to export markets to manage costs more effectively.”
Al Jarwan called for the need for more investment to support production in currently producing fields or develop new fields, as well as adjusting financial terms to suit current market conditions and assist new investments, and cooperating with the national company to share available data and share risks in the future. At the same time, financing requires profitable projects, long-term contracts and supportive legislation from the government, as well as creating proactive energy strategies that promote a more flexible environment for the international oil and gas company.” ADNOC and Active Participation
For his part, Abdulla Al Shamsi, Senior Vice President of ADNOC (Abu Dhabi National Oil Company), stressed the importance of building sustainable and mutually beneficial partnerships, noting during his speech at the symposium that the company’s participation in the OGT 2024 International Forum demonstrated the seriousness of these intentions, as the UAE’s participation is the largest in all years of ADNOC’s participation in this event, which highlights the importance of the forum for the company, and for the first time, ADNOC organized its own pavilion at the exhibition.
ADNOC AIMS
Al Shamsi referred in particular to the role of Turkmenistan as a strategic partner for business and trade visits, and said: “The country has many advantages: large energy reserves, a convenient geographical location in the heart of the region, and stable relations with neighboring countries, which makes Turkmenistan a major player in the global transition to low-carbon energy. He also paid special attention to natural gas, which Turkmenistan has in huge quantities. This relatively environmentally friendly fuel, with low carbon emissions, can accelerate the country’s economic growth.”
Al Shamsi explained that ADNOC aims to actively participate in international gas projects The company’s extensive experience in developing gas fields with high sulfur content has made it a leader in the global energy industry.
At the same time, multinational oil and gas company British Petroleum (BP) has expressed interest in establishing partnerships with Turkmenistan, as Ariel Flores, BP’s Senior Vice President of Underground Drilling, highlighted during the OGT 2024 conference, emphasizing the strategic importance of Turkmenistan in the global energy market, which is currently undergoing major changes.
Flores noted that global energy demand is growing by about 1% annually, with Asian countries at the forefront, and recent disruptions in gas supplies by 3% have exacerbated market stability issues and led to a seven-fold increase in gas prices, negatively impacting the economies of importing countries. To prevent such crises, it is necessary to develop modern gas transportation systems. Moreover. For his part, Zhang Dawei, Vice President of China National Petroleum Corporation (CNPC), stressed that energy security has become a key element of economic growth, and that the global energy transformation is taking a more pragmatic approach, while oil and gas will continue to play an important role in the global energy consumption structure. He predicted that by 2050, demand for these resources will remain high, accounting for at least half of the global fuel and energy balance, and that changes in the demand structure are inevitable due to environmental challenges and the need for cleaner energy sources. Zhang Dawei said: “The company currently provides investment, trading and engineering services in more than 120 countries and operates about 90 projects in the oil, gas and petrochemical sectors in more than 30 countries, continuing to enhance its reputation as a reliable partner. Cooperation with Turkmenistan has become an essential part of China’s international strategy. Over the past three decades, a strong gas partnership, known as the “five-in-one” model, has been established, covering key stages from extraction and transportation to trade, financing and engineering services.”
The 29th International Conference “Oil and Gas in Turkmenistan OGT 2024” began with a panel discussion on new trends in the global energy market and prospects for mutually beneficial cooperation. Speakers included representatives of the Turkmen government and major companies such as CNPC, ADNOC, S&P Global Commodity Insights and BP. The session was moderated by the UN Resident Coordinator in Turkmenistan, Dmitry Shlabachenko.
